Shares of Adani Group Companies rallied sharply on Tuesday, rising 2-11 per cent, tracking a broader market surge after news of an India-US trade deal agreement lifted investor sentiment across risk assets.

The surge added about ₹1.06 lakh crore to the conglomerate’s total market capitalization in a single session, with brokerage Jefferies noting that the Adani Group is likely to emerge as one of the key beneficiaries of the trade deal.

Adani Enterprises led the Nifty 50 pack to settle 10 per cent higher at 2,202.60, jumping as much as 12 per cent to ₹2,233.40 intraday from its previous close of ₹1,995.40. The company posted a standalone net profit for the quarter ended December 2025 at ₹6,295.99 crore compared to ₹534.59 crore year ago.

Adani Ports and Special Economic Zone closed 9 per cent positive at ₹1,530.80, hitting an intraday high of ₹1,537 against the previous close of ₹1,403.10. It recorded a gain of over ₹27,000 crore in market capitalization, supported by its strong Q3 FY26 results. It reported a consolidated PAT of ₹3,042.93 crore in Q3, up from ₹2,518.39 crore a year earlier.

Renewable and utility plays in the conglomerate also saw heavy action with Adani Green, Adani Power, and Adani Energy Solutions collectively adding more than ₹44,000 crore to the group’s market value.

Adani Green climbed 10 per cent to end at ₹931.10 and touched a high of ₹951.55, while Adani Energy Solutions also ended 10 per cent higher at ₹974.40.

Adani Total Gas advanced 7.5 per cent to ₹558 before closing 4 per cent positive at ₹542.35, and Adani Power 7 per cent to ₹143.62.

AWL Agri Business shares were up 1 per cent to ₹215.12. Its consolidated net profit for the quarter ended December 2025 declined 34.5 per cent yoy to ₹269.03 crore compared to ₹410.93 crore in the same quarter last year.

Cement stocks from the group joined the rally as well, with ACC rose 2 per cent to ₹1,668.90 and Ambuja Cements soared over 3 per cent to ₹528.25.

The sharp move across Adani counters came as optimism over easing trade tensions between India and the US boosted equities broadly, encouraging investors to rotate into infrastructure, energy and capital-intensive stocks that are seen as key beneficiaries of stronger cross-border economic activity.

Published on February 3, 2026

FPIs’ short exposure in index futures has remained near 80 per cent or higher since July 2025. Photo Credit: iStockphoto

A wave of short covering by foreign portfolio investors (FPIs) helped push the Nifty 50 nearly 3 per cent higher on Tuesday after a surprise India-US trade agreement cut tariffs on Indian exports. Dealers said the positive news forced overseas investors, who were carrying record bearish positions in derivatives, to rapidly unwind shorts, but a flow reversal is yet to take shape.

Foreign investors had entered Tuesday’s session holding record bearish positions in index futures and options. Data showed FPIs were carrying a net short exposure of 8,26,636 index options contracts at the end of Monday’s trade, while net short positions in index futures alone stood at 2,27,144 contracts. Short positions accounted for nearly 90.8 per cent of their total derivatives exposure.

When markets surged following the announcement of the US-India trade deal that lowered tariffs on Indian exports, many of these large short positions were forced to close, intensifying buying pressure and pushing benchmark indices sharply higher.

Feroze Azeez, Joint CEO of Anand Rathi Wealth Ltd, said the rally was primarily a technical reaction to positioning rather than a shift in sentiment. “Foreign investors had built very large short positions in index futures ahead of the Budget. When the market unexpectedly rallied because of the US-India trade deal announcement, many of these positions were quickly closed, leading to short covering and adding to the upward move.”

“While the price action indicates meaningful short covering rather than simple unwinding, long-term reversal still hinges on corporate earnings, macro environment and global stability,” he said.

Nifty50 surges

The Nifty 50 surged 639.15 points or 2.55 per cent to settle at 25,727.55, while the Sensex soared 2,072.67 points or 2.54 per cent to close at 83,739.13, marking its biggest single-day gain in terms of points since November 22, 2024. Despite a strong opening rally, markets cooled from the day’s highs, indicating that panic-driven short covering was limited, analysts said.

Anand James, Chief Market Strategist at Geojit Investments Ltd, said that FPIs’ short exposure in index futures has remained near 80 per cent or higher since July 2025. “A structural shift in FPIs’ positioning will need a few more days to get established. We have seen several instances of brief easing, only to return to heavily short levels soon after,” he said.

However, provisional data from the NSE showed FPIs were net buyers of ₹5,426 crore in the cash market on Tuesday, while domestic institutional investors bought ₹345 crore, indicating that some fresh buying accompanied the derivatives covering.

While the finalization of the long-drawn trade deal invites some foreign inflows into the Indian equity market, FPIs remain cautious and await recovery in corporate earnings.

Published on February 3, 2026

In India, the yellow precious metal gained 6 per cent in the futures market and silver contracts were up by 15 per cent. Photo Credit: iStockphoto

Gold and silver recovered their losses over the past couple of sessions on Tuesday as bargain hunting emerged in global and domestic markets. Silver, again, outshone gold, gaining over 11 per cent, while gold rose 5.5 per cent.

In China, the white precious metal topped $100/oz again. The platinum group of metals, too, recovered from the huge fall witnessed on Friday and Monday, rising by 6 per cent.

“The sharp correction—around 25 per cent in gold and 45 per cent in silver from recent highs—has attracted strong physical buying from investors who were waiting for meaningful price retracements to accumulate precious metals,” said Renisha Chainani, Head of Research at Augmont.

technical correction

“The violent drop (Friday and Monday) is more like a technical correction than a deterioration in core fundamentals, noting that longer‑term drivers—geopolitical tensions, central‑bank buying and macro uncertainty—remain intact,” said Hareesh V, Head of Commodity Research, Geojit Investments Limited.

In India, the yellow precious metal gained 6 per cent in the futures market and silver contracts were up by 15 per cent as investors saw a buying opportunity after the precious metals complex was mauled on Friday and Monday.

Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd, and President of India Bullion and Jewelers Association Ltd, said gold is likely to remain range-bound with a positive bias, while silver may see higher volatility but benefit from strong industrial demand, keeping medium- to long-term trends intact.

At 2015 hours IST, gold was up by over $260 or nearly 5.6 per cent at $4,921.75 an ounce. Gold April futures on COMEX gained over 6 per cent at $4,948.76 an ounce. In the Mumbai spot market, gold ended at ₹1,51529 per 10 gm after opening at ₹1,50,708. On MCX, the precious metal’s April futures ruled at ₹1,52.00, a gain of nearly ₹8,500.

Silver surged to $88.49 an ounce, up by over $9. On COMEX, silver March futures increased to $88.39 an ounce. In the Mumbai spot market, silver ended at ₹2,63,935 a kg after opening at ₹2,55,372. On MCX, silver March futures increased by over ₹38,700 a kg to ₹2,75,00.

Chinese premium for silver

On the Shanghai Futures Exchange, silver March futures ruled at 23,013 yuan a kg ($103.04 an ounce). The white precious metal is at a premium in China as it is in demand for a slew of industries, such as electric vehicles, electronics and data centres.

Platinum was up over 6 percent at $2,239.10 an ounce. Palladium gained nearly 6 per cent at $1,813.5 an ounce.

Hareesh said, “A dramatic unwind hit gold and silver markets over the past two days, erasing a chunk of their record‑breaking January gains. The plunge began after CME Group hiked margin requirements on both metals, forcing leveraged traders to liquidate positions and accelerating a wave of selling.”

The correction was amplified by extreme overbought conditions after gold and silver touched unprecedented highs just days earlier, with silver having surged more than 60 per cent in a month and gold over 20 per cent. Profit‑taking cascaded into panic selling as liquidity thinned and volatility spiked, he said.

dazzling run

Chainani, head of research at Augmont, said gold and silver rebounded as markets factored in the absence of key US economic data due to a partial government shutdown and renewed bargain hunting.

Gold prices may extend the ongoing rebound towards $5,000 (₹155,000), with strong support seen near $4,600 (₹139,000), she said

Silver is attempting to build a base and is expected to consolidate in the $72–$87 range (~₹225,000–₹270,000). A buy-on-dips and sell-on-rallies strategy is advisable within this range amid elevated volatility, Chainani said.

The precious metals complex has had a dazzling run up to a record high of $5,608 on geopolitical crises, US trade disputes with other nations, and investors switching over to precious metals, fearing slack economic growth. In addition, silver has been facing a physical deficit for over seven years in a row.

Published on February 3, 2026

At 1245 hours IST, gold was up by $227 or nearly 5 per cent at $4,887.05 an ounce. Gold April futures on COMEX gained over 5.5 per cent at $4,913.14 an ounce. | Photo Credit: matejmo

Bargain hunting put an end to the fall in gold and silver prices, as the precious metals gained handsomely on Tuesday in the global market.

“The sharp correction — around 25 per cent in gold and 45 per cent in silver from recent highs — has attracted strong physical buying from investors who were waiting for meaningful price retracements to accumulate precious metals,” said Renisha Chainani, head of research at Augmont.

Silveragain, outshone gold, gaining over 8 per cent, while gold rose nearly 5 per cent by mid-day. In India, the yellow precious metal gained by 10 per cent and silver marginally in the Mumbai spot market. But on mcxgold futures were 5.5 per cent and silver contracts by 11 per cent as investors saw a buying opportunity after the precious metals complex was mauled on Friday and Monday.

At 1245 hours IST, gold was up by $227 or nearly 5 per cent at $4,887.05 an ounce. Gold April futures on COMEX gained over 5.5 per cent at $4,913.14 an ounce. In the Mumbai spot market, gold opened at ₹1,50,708 per 10 gm and on MCX, the precious metal’s April futures ruled at ₹1,51,900, a gain of nearly ₹8,000.

Silver at premium in China

Silver surged to $86.3 an ounce, up by over $7. On COMEX, silver March futures increased to $86.06 an ounce. In the Mumbai spot market, silver opened at ₹2,55,372 against ₹2,59,500 last evening. On MCX, silver March futures increased by over ₹27,800 a kg to ₹2,64,100.

On the Shanghai Futures Exchange, silver March futures ruled at 21,750 yuan a kg ($97.39 an ounce). The white precious metal is at a premium in China as it is in demand for a slew of industries, such as electric vehicles, electronics and data centres.

Platinum was up over 5% at $2,219.40 an ounce. Palladium gained nearly 7 per cent at $1,822 an ounce.

Hareesh V, Head of Commodity Research, Geojit Investments Limited, said, “A dramatic unwind hit gold and silver markets over the past two days, erasing a chunk of their record‑breaking January gains. The plunge began after CME Group hiked margin requirements on both metals, forcing leveraged traders to liquidate positions and accelerating a wave of selling.”

Lack of key data

The correction was amplified by extreme overbought conditions after gold and silver touched unprecedented highs just days earlier, with silver having surged more than 60 per cent in a month and gold over 20 per cent. Profit‑taking cascaded into panic selling as liquidity thinned and volatility spiked, he said.

“The violent drop is more like a technical correction than a deterioration in core fundamentals, noting that longer‑term drivers—geopolitical tensions, central‑bank buying and macro uncertainty—remain intact,” said Hareesh.

Chainani said gold and silver rebounded nearly 10 per cent from recent lows as markets factor in the absence of key US economic data due to a partial government shutdown and renewed bargain hunting.

Gold prices may extend the ongoing rebound towards $5,000 (₹155,000), with strong support seen near $4,600 (₹139,000).

Silver is attempting to build a base and is expected to consolidate in the $72–$87 range (~₹225,000–₹270,000). A buy-on-dips and sell-on-rallies strategy is advisable within this range amid elevated volatility, she said.

The precious metals complex has had a dazzling run up to a record high of $5,608 on geopolitical crises, US trade disputes with other nations, and investors switching over to precious metals, fearing slack economic growth. In addition, silver is facing physical deficit for over seven years in a row.

Published on February 3, 2026